Law Firm Behind Dossier has Another Lawyer Resigning Ahead of IG Report

Tag team or the whole firm?

So, we know Perkin Coie was the law firm that was hired by Hillary Clinton to pay for the work done on the Trump dossier. The lawyer pinpointed was Marc Elias. Letter of evidence is here. But could there have been another lawyer in the operation, once such Bob Bauer?

P050911PS-0060 | President Barack Obama walks through the ... Bauer on far right

Bauer was formerly the top White House lawyer under the Obama administration. His wife is Anita Dunn who was the White House Communications Director at the same time. She is known for giving a speech where she declared her admiration for Mao Zedong. What a pair eh? Anita by the way is a senior partner at SKDKnickerbocker, a strategic communications firm in DC. Just so you know, SKDKnickerbocker only represents Democrats including Andrew Cuomo and Sandra Fluke. Their favorite issues such as Center for Reproductive Rights, the Obama Presidential Library.

BLOCKBUSTER VIDEO: OBAMA'S ELIGIBILITY LAWYER BEHIND IRS ...

Okay, so meanwhile, her husband, Bob has resigned from Perkins Coie to continue teaching at NYU. He has been a the law firm for 40 years. Bauer served as counsel to the Senate minority leader during former President Bill Clinton’s impeachment trial of 1999, and took leave from the firm to work as Obama’s White House counsel from 2010 through July 2011.

Obama's Supreme Court point man low-key but tough photo

Bob Bauer is also the legal counsel for the Obama Foundation and the Biden Foundation as well as the Democratic National Committee, where Marc Elias served as chair. Elias was the lead counsel of record for the Hillary Clinton presidential campaign.

Bauer remains in full support of James Comey and his loyalty characteristics. In part from Bauer’s article on Comey is:

Comey writes that at an earlier point in the investigation, he raised with Deputy Attorney General Sally Yates the need for unusual transparency when the investigation was closed. She did not get back to him, he recalls, but soon two events persuaded him that further consultation or coordination was inadvisable. A still-classified email surfaced in the investigation that he believed that partisans would seize on to claim that the attorney general had committed to protect Clinton from legal harm. He did not credit the content of the communication, but feared the consequences of partisan distortions for the reputation of the Justice Department. Then the attorney general announced what Comey refers to as her “tortured half-in, half-out” quasi-recusal following the meeting with Bill Clinton at the Phoenix airport.

It was then that Comey concluded that he would go it alone—a course of action that, without explanation, he refers to as a “crazy idea of personally offering the American people unusual transparency, and doing it without the leadership of the Department of Justice.” To the extent that there was a deliberative process, it occurred entirely within the FBI: there, Comey drew on the advice of his management team. So, on an issue of this magnitude, the circle within which views could be expressed was tightly drawn. Comey addressed the process problem he faced through an ad hoc, closed process of his own. He might have thought he was left with no choice, the other principals having disqualified themselves from participation.

The full item that Bob Bauer wrote is quite the read and you can find it here.

 

 

Why Did Russian Operatives Poison Sergei Skripal?

Sergei Skripal is officially released from the hospital today.

Friend who picked up Yulia Skripal from airport complains ... photo

Sergei Skripal was a double agent working for both Russian intelligence and the British agency MI6. During the spy swap scandal between the United States in Russia, Britain asked the Obama administration to include Sergei Skripal to be included in the swap as he was in a Russian prison at the time. The request was granted. Skripal continued his work on behalf of MI6 after his release. He is contracting for MI6 advising Eastern European countries, including Estonia on how to deal with Russian aggression due to the annexing and militant operations of Crimea and Ukraine.

Friend says Sergei Skripal wrote to Vladimir Putin for ... photo

Further, it is written that Skripal had a relationship with a British intelligence officer who wrote the Trump Russian dossier. That British intelligence officer worked for Orbis of Christopher Steele fame, hired by Fusion GPS.

A Russian former construction mogul claimed Skripal was still working with Russia’s intelligence apparatus, although it remains unclear what connection, if any, Skripal had with the security consultant.

“If you have a military intelligence officer working in the Russian diplomatic service, living after retirement in the U.K., working in cybersecurity and every month going to the embassy to meet military intelligence officers—for me, being a political refugee, it is either a certain danger or, frankly speaking, I thought that this contact might not be very good for me because it can bring some questions from British officials,” Valery Morozov told British TV outlet Channel 4.

Steele has found himself under intense scrutiny ever since his 35-page dossier, which details Trump’s links to Russia and accusations of possible collusion to win the White House in 2016, was disclosed. The dossier has yet to be completely verified but has dogged Trump and only intensified accusations of deeper ties to Russia, which the president has not explained.

Steele reportedly wrote another, different memo, which has not reached the public. It details how Russia believed it was able to stop Trump from naming former Massachusetts Governor Mitt Romney—a noted hawk on Russia—as secretary of state in favor of a more pro-Russia representative. Trump eventually went with former Exxon Mobil chief Rex Tillerson, who has a long-running relationship with Putin. More here.

Russia continues to deny the operation of poison against Sergei Skripal and his daughter and denies it ever had the nerve agent known as Novichok. Well, German intelligence has proof otherwise and collaborated with British intelligence on the investigation.

Some North Atlantic Treaty Organization (NATO) member states obtained access to the Soviet Union’s so-called ‘Novichok’ nerve agents in the 1990s, through an informant recruited by German intelligence, according to reports. NATO countries refer to ‘Novichok-class’ nerve agents to describe a series of weaponized substances that were developed by the Soviet Union and post-Soviet Russia from the early 1970s to at least 1993. They are believed to be the deadliest nerve agents ever produced, but Moscow denies their very existence. A type of Novichok agent, described by British scientists as A234, is said to have been used in March of this year by the person or persons who tried to kill Sergei Skripal in Salisbury, England. Skripal is a former Russian military intelligence officer who spied for Britain in the early 2000s and has been living in England ever since he was released from a Russian prison in 2010.

On Thursday, two German newspapers, Die Süddeutsche Zeitung and Die Zeit, and two regional public radio broadcasters, WDR and NDR, said that the NATO alliance has had access to the chemical composition of Novichok nerve agents since the period immediately following the collapse of the USSR in 1991. Specifically, the reports claimed that the access was gained through a Russian scientist who became an informant for the German Federal Intelligence Service, known as the BND. The scientist struck a deal with the BND: he provided the spy agency with technical information about the Novichok agents in exchange for safe passage to the West for him and his immediate family. Initially, the German government was reluctant to get its hands on material that was —and remains— classified as a weapon of mass destruction by international agencies. But eventually it asked for the chemical composition of the Novichok nerve agents and even acquired samples from the Russian informant.

According to media reports, the BND proceeded to share information about the chemical composition of the Novichok nerve agents with key NATO allies, including Sweden, France, Britain and the United States. The sharing of such a sensitive substance was approved by the then German Chancellor Helmut Kohl, said the reports. In the following years, a handful of NATO countries proceeded to produce what media reports described as “limited quantities” of Novichok agents, reportedly in order to experiment with various defense measures against them and to produce antidotes. Russia has denied accusations that it was implicated in Skripal’s poisoning and has argued that other countries, some of them NATO members, have the capacity to produce Novichok agents. Hat-tip.

Obama Intelligence Officials Testify, Russian Meddling

The Senate Intelligence Committee is preparing to question top Obama administration intelligence officials behind closed doors on Wednesday on their explosive assessment that officially accused Russia of meddling in the 2016 presidential election to boost then-candidate Donald Trump.

The committee, led by Chairman Richard Burr, R-N.C., and Vice Chairman Mark Warner, D-Va., invited former Director of National Intelligence James Clapper, former Central Intelligence Agency Director John Brennan, former National Security Agenda Director Michael Rogers (who retired earlier this year) and former FBI Director James Comey.

DOCUMENTS SUGGEST POSSIBLE COORDINATION BETWEEN CIA, FBI, OBAMA WH AND DEM OFFICIALS EARLY IN TRUMP-RUSSIA PROBE: INVESTIGATORS

Comey, though, plans to skip the closed-door session Wednesday due to a “previously scheduled engagement,” his attorney said.
Deeper dive

Sperry: House Intelligence Committee Chairman Devin Nunes next plans to investigate the role former CIA Director John Brennan and other Obama intelligence officials played in promoting the salacious and unverified Steele dossier on Donald Trump — including whether Brennan perjured himself in public testimony about it.

In his May 2017 testimony before the intelligence panel, Brennan emphatically denied the dossier factored into the intelligence community’s publicly released conclusion last year that Russia meddled in the 2016 election “to help Trump’s chances of victory.”

Brennan also swore that he did not know who commissioned the anti-Trump research document (excerpt here), even though senior national security and counterintelligence officials at the Justice Department and FBI knew the previous year that the dossier was funded by the Hillary Clinton campaign.

Last week, Nunes (R-Calif.) released a declassified memo exposing surveillance “abuses” by the Obama DOJ and FBI in their investigation of Trump’s ties to Russia. It said the agencies relied heavily on the uncorroborated dossier to take out a warrant to secretly surveil a Trump adviser in the heat of the 2016 presidential election, even though they were aware the underlying “intelligence” supporting the wiretap order was political opposition research funded by Clinton allies — a material fact they concealed from FISA court judges in four separate applications.

Nunes plans to soon release a separate report detailing the Obama State Department’s role in creating and disseminating the dossier — which has emerged as the foundation of the Obama administration’s Russia “collusion” investigation. Among other things, the report will identify Obama-appointed diplomats who worked with partisan operatives close to Hillary Clinton to help ex-British spy Christopher Steele compile the dossier, sources say.

“Those are the first two phases” of Nunes’ multipart inquiry, a senior investigator said. “In phase three, the involvement of the intelligence community will come into sharper focus.”

The aide, who spoke only on condition of anonymity, said Nunes will focus on Brennan as well as President Obama’s first CIA director, Leon Panetta, along with the former president’s intelligence czar, James Clapper, and national security adviser, Susan Rice, and security adviser-turned U.N. ambassador Samantha Power, among other intelligence officials.

“John Brennan did more than anyone to promulgate the dirty dossier,” the investigator said. “He politicized and effectively weaponized what was false intelligence against Trump.”

Attempts to reach Brennan for comment were unsuccessful.

Several Capitol Hill sources say Brennan, a fiercely loyal Obama appointee, talked up the dossier to Democratic leaders, as well as the press, during the campaign. They say he also fed allegations about Trump-Russia contacts directly to the FBI, while pressuring the bureau to conduct an investigation of several Trump campaign figures starting in the summer of 2016.

Trump campaign Chairman Paul Manafort was wiretapped in addition to Trump adviser Carter Page during the campaign. (Page has not been charged with a crime. Manafort was recently indicted for financial crimes unrelated to the Moscow “collusion” activities alleged in the dossier.)

On Aug. 25, 2016, for example, the CIA chief gave an unusual private briefing to then-Senate Minority Leader Harry Reid (D-Nev.) in which he told Reid the Russians were backing Trump and that the FBI would have to take the lead in an investigation because the FBI is the federal agency in charge of domestic intelligence and, unlike the CIA, can spy on U.S. citizens.

Two days after Brennan’s special briefing, Reid fired off a letter to then-FBI Director James Comey demanding he open an investigation targeting “individuals tied to Trump” to determine if they coordinated with the Russian government “to influence our election.”

“The Trump campaign has employed a number of individuals with significant and disturbing ties to Russia and the Kremlin,” the then-top Democrat in the Senate added in his two-page letter.

Reid then alluded to Page as one of those compromised individuals and repeated an unproven charge from the dossier that Page had met with two Kremlin officials in Moscow in July 2016 to discuss removing U.S. sanctions on Russia. Page has repeatedly denied the allegation under oath, swearing he never even met the Russian officials named in the dossier.

“Any such meetings should be investigated,” Reid asserted.

Less than two months later, Comey signed an application for a surveillance warrant to monitor Page’s emails, text messages, phone conversations and residence.

Unsatisfied with the progress of Comey’s investigation, Reid released an open letter to the FBI chief in late October 2016 accusing him of sitting on evidence. Reid told Comey that from his communications with “other top officials in the national security community, it has become clear that you possess explosive information about close ties and coordination between Donald Trump, his top advisers and the Russian government — a foreign interest openly hostile to the United States, which Trump praises at every opportunity.”

Congressional investigators say that the “explosive information” Reid referred to was the false or unverified claims in the Clinton-funded dossier — which the sources say were passed along by Brennan. They add that Brennan gave more than one briefing.

After Trump won the election, sources say, the CIA director sought to “weaponize” the dossier’s wild accusations against the president-elect.

In early January, just weeks before Trump was inaugurated, investigators say Brennan saw to it that the contents from the dossier were attached to an official daily intelligence briefing for Obama. The special classified briefing was then leaked to the major Washington media, allowing them to use the presidential briefing to justify the publication of claims they had up to that point not been able to substantiate and had been reluctant to run.

CNN broke the news that the dossier — described as “classified documents” — had been attached to the briefing report by the CIA, and had been given to the president. The top-level credence that the government was placing in the dossier gave prominent newspapers, including the Washington Post and New York Times, justification to follow suit.

In addition, BuzzFeed published 35 pages of the dossier in full. (The Internet news outlet was recently sued by Trump campaign lawyer Michael Cohen, whom the dossier accused of conspiring with the Kremlin to pay Russian hackers to steal Clinton campaign emails. It’s one of several libel and defamation lawsuits tied to the dossier.)

At the time, the Washington Post was assured by Obama intelligence officials that “the sources involved in the [dossier’s] reporting were credible enough to warrant inclusion of their claims in the highly classified [presidential] report.” Months later in public testimony, however, Brennan said the dossier and its sources were not credible enough to incorporate the information in a separate January 2017 intelligence report on Russian election interference publicly released by the administration. The published unclassified version of the report nonetheless echoes the dossier’s central assertion that Moscow meddled in the election to help Trump.

Brennan later swore the dossier did not “in any way” factor into the CIA’s assessment that Russia interfered in the election to help Trump. However, congressional investigators suggest a still-classified version of the January 2017 intelligence report contradicts his claim. Also in his May 2017 testimony, Brennan swore he had no idea who commissioned the dossier.

CIA veterans say Brennan was the most politicized director in the agency’s history and was responsible for much of the anti-Trump bias from the intelligence community during the campaign and transition period.

Former CIA field operations officer Gene Coyle, a 30-year agency veteran who served under Brennan, said he was “known as the greatest sycophant in the history of the CIA, and a supporter of Hillary Clinton before the election.”

“I find it hard to put any real credence in anything that the man says,” he added.

Coyle noted that Brennan broke with his predecessors who stayed out of elections. Several weeks before the vote, he said, “Brennan made it very clear that he was a supporter of candidate Clinton, hoping he would be rewarded with being kept on in her administration.” (Brennan is a liberal Democrat. In fact, at the height of the Cold War in 1976, he voted for a Communist Party candidate for president.)

What’s more, his former deputy at the CIA, Mike Morell, who formed a consulting firm with longtime Clinton aide and campaign adviser Philippe Reines, even came out in early August 2016 and publicly endorsed her in the New York Times, while claiming Trump was an “unwitting agent” of Moscow.

“In the intelligence business, we would say that Mr. Putin had recruited Mr. Trump as an unwitting agent of the Russian Federation,” he claimed. “My training as an intelligence officer taught me to call it as I see it. This is what I did for the CIA. This is what I am doing now. Our nation will be much safer with Hillary Clinton as president.”

Reid repeated Morell’s allegation against Trump in his August 2016 letter to Comey.

Career U.S. intelligence officials say Morell, like Brennan, was personally invested in a Clinton victory.

Morell “had aspirations of being CIA director if she had won,” said former FBI counterintelligence official I.C. Smith, whose service overlapped with Brennan’s.

Investigators are trying to learn if the Clinton campaign shared, through Reines, the early memos on the dossier it was paying for with Morrell before he wrote his Times op-ed.

Morell could not be reached for comment. But he pushed back hard last week against Nunes releasing his memo exposing the FBI’s reliance on the dossier for Trump wiretaps, which he argued “did not have to happen. It undermines the credibility of the FBI in the public’s eyes, and with no justification in my view.”

“What happened here underscores the partisanship and the dysfunction of a very important committee in Congress, and that does not serve Congress well. It doesn’t serve the intelligence community, and it doesn’t serve the country well,” Morell continued earlier this week in an interview with CBS News, where he now works as a “senior national security contributor.”

Sources say Brennan is aware that the House Intelligence Committee is targeting him in its wide-ranging investigation of the dossier and investigative and intelligence abuses related to it, and that Nunes plans to call him and other former Obama administration officials before the panel to question them based on newly obtained documents and information.

Last week, perhaps not coincidentally, Brennan signed a contract with NBC News and MSNBC to be their “senior national security and intelligence analyst.”

On Sunday’s “Meet the Press,” Brennan laced into Nunes for releasing the memo revealing FBI surveillance abuses related to the dossier, claiming the head of the intelligence panel has “abused the office of the chairmanship.”

“It really underscores just how partisan Mr. Nunes has been,” Brennan charged.

In the interview, Brennan claimed he first learned of the existence of the dossier “in late summer of 2016, when there were some individuals from the various U.S. news outlets who asked me about my familiarity with it. And I had heard just snippets about it.”

He further contended that he had neither seen nor read the dossier until a month after the election.

“I did not know what was in there,” Brennan said. “I did not see it until later in that year, I think it was in December.”

Brennan also insisted he did not know who was pulling the strings on the research that went into the dossier.

“I was unaware of the provenance of it as well as what was in it,” he said, and he reasserted that “it did not play any role whatsoever in the intelligence community assessment that was done.”

Obama’s director of national intelligence, James Clapper, is also coming under scrutiny for his role in the dossier.

He joined Brennan in giving Obama a two-page summary of the dossier memos during the presidential briefing in January 2017. Days later, Clapper expressed “profound dismay at the leaks that have been appearing in the press,” and misleadingly referred to the dossier as a “private security company document.”

The intelligence committee plans to press Clapper to find out if he knew at the time that, in fact, the document was political opposition research underwritten by the Clinton campaign, and whether any of the leaks to the media came from his office.

“I do not believe the leaks came from within the IC [intelligence community],” he maintained at the time, adding that “we did not rely upon [the dossier] in any way for our conclusion” on Russian interference.

In October 2016, during the heat of the campaign, Clapper issued a public report declaring that Russian President Vladimir Putin’s regime directed the cyberattacks on Clinton campaign emails, echoing memos Steele was delivering at the time to the Clinton campaign.

A year later, after it was finally revealed in the national media that the Clinton campaign and the Democratic National Committee funded the research that went into the notorious dossier, Clapper insisted it “doesn’t matter who paid for it.”

“It’s what the dossier said and the extent to which it was — it’s corroborated or not. We had some concerns about it from the standpoint of its sourcing, which we couldn’t corroborate,” Clapper added last October in an interview with CNN.

He went on to strongly suggest that the intelligence assessment report he issued with Brennan, which concluded the Kremlin not only hacked the Democratic campaign but did so specifically to put Trump in the White House, was based on “some of the substantive content of the dossier.”

“But at the same time, some of the substantive content, not all of it, but some of the substantive content of the dossier, we were able to corroborate in our Intelligence Community Assessment from other sources, which we had very high confidence of,” Clapper said.

Investigators say Nunes intends to drill down on exactly who those “other sources” are now that his committee has learned that top officials at both the FBI and Justice Department relied on a Yahoo! News article as their additional sourcing to corroborate the dossier allegations they cited to obtain Trump campaign wiretap warrants — even though it turns out the main source for the Yahoo! story was merely the dossier’s author, Steele, who was disguised as “a Western intelligence source.”

Clapper, who recently signed his own media deal, joining CNN as a paid “contributor,” bashed Nunes on the network and suggested the release of future reports could endanger the intelligence community’s mission. He said his release of the FBI memo was “political” and an “egregious” betrayal of “others in the intelligence community who have a lot at stake here with the whole FISA [surveillance] process.”

Facebook Deleted 538 Million Fake Accounts in 2018

Facebook removed 700 million in 2017. Staggering numbers.

So much for reliance on artificial intelligence software programs or high praise for them in pinpointing fake accounts. Is it any wonder what Facebook does to accounts, links and news on the platform and what shows up on your timeline or in trending? Perhaps we are now to rely on the new 10,000 Facebook editors. Consider, during the first quarter of 2018, Facebook deleted 865.8 million posts, the majority of which were spam, according to the report. Facebook also removed 28.8 million posts showing everything from nudity that violated its community standards to graphic violence and terrorist propaganda, the report said.

It is interesting that media has not fully responded, as journalists use Facebook trending items to determine lead stories. Perhaps headlines will change or perhaps not so much.

We’re committed to doing more to keep you safe and protect your privacy. So that we can all get back to what made Facebook good in the first place: friends. Because when this place does what it was built for, we all get a little closer.

Facebook has been running ads in markets still working to regain trust and still working to create new people relationships with each other. Users still don’t have a full understanding of user standards and what violations really mean.

Facebook’s first community standards enforcement report says the social media giant disabled 583 million fake accounts in the first quarter of 2018, relying heavily on artificial intelligence.

The report, released Tuesday, aims to show how Facebook is taking action against content that violates its standards. The staggering number of fake accounts it disabled in the period fell from 694 million in the fourth quarter of 2017. The report didn’t reveal earlier data.

The first-quarter report also said Facebook acted on 836 million pieces of spam content, 2.5 million pieces of hate speech content, 1.9 million pieces of terrorist propaganda content, 21 million pieces of adult nudity and sexual activity content and 3.4 million pieces of graphic violence content.

Facebook executives vowed to increase transparency in the wake of recent controversies involving the spread of fake news and the and the unauthorized harvesting of personal data.

“It’s a good move and it’s a long time coming,” Jillian York, director for international freedom of expression at the Electronic Frontier Foundation, told The New York Times of the new report. “But it’s also frustrating because we’ve known that this has needed to happen for a long time. We need more transparency about how Facebook identifies content, and what it removes going forward.”

The report said Facebook increasingly relies on AI to flag unsavory content. AI tools detected 98.5 percent of the fake accounts that were shut down, according to the report, and almost all of the spam content acted upon.

“Technology isn’t going to solve all of it, but we will make progress,” Guy Rosen, who heads Facebook’s team policing community standards, told The Financial Times.

The report acknowledged that Facebook’s metrics tracking its response to content that violates standards are still being refined.

“This is the start of the journey and not the end of the journey and we’re trying to be as open as we can,” said Richard Allan, Facebook’s vice president of public policy for Europe, the Middle East and Africa.

Facebook a day earlier announced it had suspended about 200 apps while it investigates whether any of them contributed to the misuse of data.

al Shabaab Funded by Minnesota Daycare Operations

al Shabaab has operated as a terror organization in East Africa at least since 2012 and has pledged full allegiance to al Qaeda. The translation for the name, al Shabaab is ‘the youth’ or ‘the youngsters’. That is significant in this case. It operates mostly in Somalia and was known for the attack on the Westgate shopping mall in Nairobi, Kenya.

So, we have this extensive case in Minnesota and carry on luggage on flights leaving the United States out of Seattle, with millions of dollars inside.

Millions of dollars in welfare fraud from Minnesota could ...

– For five months, Fox 9 has been investigating what appears to be rampant fraud in a massive state program.

This fraud is suspected of costing Minnesota taxpayers as much as $100 million a year.

The Fox 9 Investigators reporting is based on public records and nearly a dozen government sources who have direct knowledge of what is happening.

These sources have a deep fear, and there is evidence to support their concerns, that some of that public money is ending up in the hands of terrorists.

SUITCASES FILLED WITH MONEY

This story begins at Minneapolis-St. Paul International Airport, where mysterious suitcases filled with cash have become a common carry-on.

On the morning of March 15, Fox 9 chased a tip about a man who was leaving the country. Sources said he took a carry-on bag through security that was packed with $1 million in cash.  Travelers can do that, as long as they fill out the proper government forms.

Fox 9 learned that these cloak-and-dagger scenarios now happen almost weekly at MSP. The money is usually headed to the Middle East, Dubai and points beyond. Sources said last year alone, more than $100 million in cash left MSP in carry-on luggage.

The national, go-to expert on what is behind these mysterious money transfers is Glen Kerns.

“What we were interested in is where it was going,” Kerns said.

He is a former Seattle police detective who spent 15 years on the FBI’s joint terrorism task force, until his retirement.

“It’s an outright crime, it’s unbelievable,” he said.

Kerns tracked millions of dollars in cash that was leaving on flights from Seattle.

It was coming from Hawalas, businesses used to courier money to countries that have no official banking system.

Some immigrant communities rely on Hawalas to send funds to help impoverished relatives back home.

Kerns discovered some of the money was being funneled to a Hawala in the region of Somalia that is controlled by the al Shabaab terrorist group.

“I talked to a couple of sources who had lived in that region and I said, ‘If money is going to this Hawala do you think it is going to al Shabaab?'” said Kerns. “And he said, ‘Oh definitely, that area is controlled by al Shabaab, and they control the Hawala there.’”

He said when the money arrives, whether it was intended for legitimate purposes or not, al Shabaab or other groups demand a cut.

As Kerns dug deeper, he found that some of the individuals who were sending out tens of thousands of dollars’ worth of remittance payments happened to be on government assistance in this country.

How could they possibly come up with such big bucks to transfer back home?

“We had sources that told us, ‘It’s welfare fraud, it’s all about the daycare,’” said Kerns.

FOX 9 REPORTED ON THE FRAUD FIVE YEARS AGO

To better understand the connection between daycare fraud and the surge in carry-on cash, you have to look at the history of this crime.

Five years ago the Fox 9 Investigators were first to report that daycare fraud was on the rise in Minnesota, exposing how some businesses were gaming the system to steal millions in government subsidies meant to help low-income families with their childcare expenses.

“It’s a great way to make some money,” Hennepin County Attorney Mike Freeman said.

In order for the scheme to work, the daycare centers need to sign up low income families that qualify for child care assistance funding.

Surveillance videos from a case prosecuted by Hennepin County show parents checking their kids into a center, only to leave with them a few minutes later. Sometimes, no children would show up.

Either way, the center would bill the state for a full day of childcare.

Video from that same case shows a man handing out envelopes of what are believed to be kickback payments to parents who are in on the fraud.

When asked where the money was going, Freeman said, “I don’t know exactly where it went. But it adds up when you begin to look at how many people were involved.”

FOZIA ALI

One recent federal case points to at least some of the money going overseas.

Fox 9 obtained video of Fozia Ali being sworn in as a member of the city of Hopkins Park Board.

“I will support the constitution of the United States,” she said.

As she was taking her oath of office, she was also under investigation for wire fraud and theft of public money.

“So help me God,” she said during the ceremony.

State and federal agents had already raided Ali’s daycare center in south Minneapolis. The business was suspected of billing the government for more than a million dollars’ worth of bogus childcare services.

“We found records that she was collecting a significant amount of money for a much larger number of children than were actually attending the center,” said Craig Lisher from the FBI. “We are aware that some of the funds went overseas, what she was cashing out, money from the business.”

When asked if he had any idea of what it was going for he said, “I can’t say.” When pressed if he can’t say or doesn’t know he responded, “I can’t say.”

Investigators analyzed Ali’s cell phone to track her activities.

She took a two-month trip from Minnesota to Dubai and then Kenya, staying at times in $800 a night hotel rooms.

She used an app on her phone to bill the state of Minnesota for childcare services while she was out of the country.

Ali pled guilty to the daycare fraud and in March started serving time in a federal prison. She declined Fox 9’s request for an interview.

10 DAYCARES UNDER ACTIVE INVESTIGATION

“We believe that there’s a scope of fraud out there that we really need to get our arms around and ensure that those dollars are going to kids that really need them,” Acting Commissioner for the Department of Human Services Chuck Johnson said.

He told the Fox 9 Investigators his agency has 10 daycares currently under active investigation for fraud.

Fox 9 has learned dozens more are considered suspicious.

Search warrants obtained by the Fox 9 Investigators show each one of the suspect centers has received several million dollars in childcare assistance funds.

According to public records and government sources, most are owned by Somali immigrants.

When asked if the Department of Human Services has any evidence to suggest this looks like organized crime, Johnson responded, “There’s a common pattern in how a lot of these are carried out, but beyond that, not something that I would directly categorize as organized crime.”

Sources in the Somali community told Fox 9 it is an open secret that starting a daycare center is a license to make money.

The fraud is so widespread they said, that people buy shares of daycare businesses to get a cut of the huge public subsidies that are pouring in.

Government insiders believe this scam is costing the state at least a hundred million dollars a year, half of all child care subsidies.

“I don’t think half sounds credible,” Johnson said. “I certainly think that some of the schemes that we’re seeing and certainly the ones that we’ve brought forward already for prosecution involve millions of dollars. I mean this is not a small scale that we’re looking at.”

TRACKING THE MONEY?

Minnesota started aggressively going after daycare fraud in 2014. Back then, it was easier to track the flow of money.

The state would pay a daycare’s bill and within hours of the money showing up in the business’s bank account, funds were being wired to the United Arab Emirates.

Those wire transfers stopped after a few centers were busted.

Which brings us back to those mysterious suitcases at Minneapolis-St. Paul International.

In 2015, investigators documented $14 million in carry on cash. By 2016, it had mushroomed to $84 million. Then last year, $100 million.

A trend all too familiar to former terrorism investigator Glen Kerns.

Fox 9 asked him how likely it is that some of the money is going towards terrorism?

“I say absolutely, our sources tell us that. Good sources, from the community leaders,” he said. “My personal opinion is we need a nationwide task force to clamp down on this type of fraud.”

This crime is spreading. Sources tell Fox 9 fraudsters in other states are now using the Minnesota playbook to rip off millions of public dollars meant to help kids.

*** Where was the FBI, the Minnesota governor, DHS?

– A government whistleblower said he warned upper management at the Department of Human Services about massive daycare fraud more than a year ago.

Emails obtained by the Fox 9 Investigators show the Minnesota government agency was told millions of stolen tax dollars were going overseas and likely a portion of the money was being skimmed by terrorism organizations.

Scott Stillman spent eight years managing the state’s digital forensics lab, meaning he mined data from computers and smart phones.

“I have never seen anything like this level or scope in my 27-year career as an investigator,” he told Fox 9.

When the state started going after daycare centers suspected of fraud, Stillman was directly involved in the investigations.

Some of the businesses were gaming the system to steal millions in government subsidies meant to help low-income families with their childcare expenses.

In many of the cases, parents would check in their children at a daycare, only to leave a few minutes later with the kids and sometimes no children would show up at the center. However, it would still bill the state for a full day of childcare.

Stillman was so alarmed by what he found that in March of 2017 he fired off a series of emails to his supervisors at DHS.

“We are working on and overwhelmed by a significant amount of fraud cases involving organized crime, defrauding hundreds of millions of dollars annually in taxpayer monies,” he wrote.

Stillman read from one of the emails he wrote which the Fox 9 Investigators obtained through a public records request.

DHS took two months before it turned over the emails, and much of what it provided was redacted.

“They were not easy to write,” he said. “But I felt I had an obligation because I think there’s a strong possibility this money is being used against innocent civilians and against our military.”

According to Stillman, he alerted a number of people in DHS including the Commissioner’s Chief of Staff with the following message: “Significant amount of these defrauded dollars are being sent overseas to countries and organizations connected to entities known to fund terrorists and terrorism.”

At a Monday press briefing, the governor told Fox 9 his office was not told about the warnings.

Sources tell the Fox 9 Investigators people within the governor’s office were told about the concerns a couple of years ago.

“My chief of staff, current and previous staff, from what I’m told, did not get any information alleging there was that kind of theft,” Dayton said.

The state currently has 10 daycare centers under investigation for fraudulent billing of childcare services.

Each of the suspect centers has received several millions of dollars in government subsidies.

According to public records and government sources, Somali immigrants own most of the daycare centers.

Fox 9 asked the Department of Human Services about the emails Stillman sent in 2017 and more specifically who, in the chain of command, was aware of them and when.

DHS responded with a statement: “The Deputy Commissioner, communications and legal staff learned there may be emails on this subject when Fox 9 made its data request in March. The then-chief compliance officer was informed at the time the emails were originally sent.”

“I would like to have an independent federal investigation of the handling of DHS programs, specifically daycares and the Medicaid fraud program by Homeland Security of the Department of Justice.”

Stillman is no longer with the state. He resigned from his position in March after 10 years on the job.